Vietnam aims for deeper relations with Thailand through PM’s visit

The Vietnamese leader said the time-honoured relations between Vietnam and Ethiopia are a prerequisite for the countries to foster their bilateral cooperation, especially in fields of their strength. He suggested affiliation in telecommunications, infrastructure construction, and agro-forestry-fishery processing. Both sides should conduct thorough surveys, sign agreements on trade and investment, organise joint goods fairs, and consider opening a direct air route to facilitate all-round cooperation, he said. Regarding the collaboration between the Communist Party of Vietnam (CPV) and the EPRDF, President Truong Tan Sang said Vietnam is willing to ink cooperation deals and share its experience, including in personnel training. For his part, Demeke Mekonnen congratulated Vietnam on its renewal attainments, adding that with similarities in history and poverty reduction, both countries can exchange experience in national development. Welcoming the host’s recommendations, the Ethiopian official voiced his wish for further cooperation between the two Parties. Giving a brief on the outcomes of his working sessions with Vietnamese ministries and agencies, he said it is the right time for both countries to beef up their relations in three channels, including the Party, Government, and people. He also suggested Vietnam and Ethiopia open embassies in each other as soon as possible. The Deputy PM also pledged the best possible conditions for foreign investors, including those from Vietnam, while proposing collaboration in environment and hydropower plant issues. The same day, Demeke Mekonnen had a meeting with deputy head of the CPV Central Committee’s Commission for Organisation Nguyen Ngoc Lam.... [read more]

Challenges imminent Small and medium-sized enterprises (SMEs) are not the only entities under pressure. Leading economic groups are also taking great pains to empty inventories and access bank loans for production expansion. Vietnam National Oil and Gas Group (PVN) Director General Do Van Hau says boosting sales is currently one of the group’s key tasks. Although the government encourages the use of biofuel (E5), the environmentally-friendly product has yet to be wholeheartedly embraced by the distribution network of the Vietnam National Petroleum Group (Petrolimex) which holds 70 percent of the domestic petrol and oil market share, Hau says. He also reveals that PVN needs large amounts of capital for oil and gas exploration, oil refinery, and power projects to get off the ground in Vietnam and overseas in 2013. He explains that the National Assembly has permitted PVN to reserve VND5.1 trillion of its profits in 2012 and 2013 for new projects. Yet, the total sum is just a drop in the ocean compared to the group’s actual investment need. The Dinh Vu fibre factory in the northern port city of Haiphong has begun its 2013 commercial operations, but its products have similarly failed to earn domestic textile companies’ acceptance. Meanwhile, Electricity of Vietnam (EVN) is running short of capital to fund the development of new power projects. EVN chief executive Hoang Quoc Vuong says that despite the recent price adjustment, EVN is facing difficulties mobilizing approximately VND106 trillion needed for new projects this year. Solutions Minister of Industry and…... [read more]

However, the local economy has achieved a higher growth rate on a quarterly basis and 1.55 times higher than the national average, said Nguyen Van Suu, Vice Mayor of Hanoi, at the Municipal People’s Council’s year-end session on December 3. The services sector is expected to gross a growth rate of 9.3 percent, construction-industry 7.7 percent, and agro-forestry-fisheries 0.4 percent. The capital’s export earnings are estimated at US$10.3 billion, a year-on-year increase of 5.3 percent, but failing to meet the set target. Its total development investment capital is estimated at VND222.5 trillion, up 13.2 percent against 2011, and not meeting the annual set target. The consumer price index (CPI) is forecast to be kept at a single digit by the year-end. In November the index inched up 0.22 percent against October, or 6.67 percent from a year earlier. The number of newly-established businesses has decreased significantly. Only 15,000 businesses have registered to operate in 2012, capitalized at VND83 trillion, or 90 percent and 70 percent of last year’s corresponding figures. Meanwhile, more than 12,500 businesses have suspended their operations, accounting for 11.4 percent of the total number of operating businesses. In its report, the city pointed out weaknesses of its economy, including risks of high inflation, business inaccessibility to bank loans, and downsizing production as a consequence of the global economic slowdown. Given difficulties in 2013, the city aims to achieve an economic growth rate of 8.0-8.5 percent, with services increasing 9.0-9.3 percent, construction-industry 7.7-8.2 percent, agriculture 1.8-2.2 percent, and…... [read more]

Between 2011-2013, as many as 94 projects, covering ​​4,214 hectares, were licensed with a total investment capitalisation of more than VND101,000 billion. Thirteen projects, worth VND4,200 billion, were put into operation, and 16 others capitalised at VND7,000 billion are under construction. Phu Quoc island achieved significant socio-economic development in the period 2011-2013 with an annual high economic growth rate of 24.8%. In its economic structure, trade-services accounted for over 47%, and industry - construction, 20%, and agro-forestry-fishery making up the remainder. The system, the longest in Southeast Asia, stretches 57.33km from Thuan Yen village in Ha Tien town to Phu Quoc district's Ham Ninh village. It includes two 110/22kV-40MVA transformers in Ha Tien and Phu Quoc. At an investment promotion conference held in Singapore last month, Vietnamese representatives briefed foreign delegates on Phu Quoc island's investment potential and incentives. Vietnam is developing a project to turn Phu Quoc into a Special Economic Zones, offering numerous incentives. Singaporean enterprises said they plan to invest in eco-tourism zones, urban areas, and hi-tech industrial parks on the island with a total area of ​ 4,000 hectares.... [read more]

The information was unveiled at a recent meeting between leaders of the management board of the Dung Quat Economic Zone and representatives from Sojitz group. So far, Sojitz group has invested in a number of infrastructure projects in industrial parks in Vietnam and in projects related to forests and wood production. It has also conducted a feasibility study to cooperate with India’s JK group for a Pulp Paper factory with a design capacity of 150,000 tonnes per year in this zone. The management board asked Sojitz group to invest in its advantageous areas such as pulp paper production, MDP wood production, chemicals, infrastructure, garments and textiles. Sojitz is Japan's leading group involved in multi business fields such as machinery and equipment production, metal, energy, chemicals ,infrastructure and agro- forestry – fishery industry and consumer goods. The group has 898 subsidiary firms and affiliates in Japan and around the globe with 16,273 employees and total asset worth JYP 2,210 billion.... [read more]

In his opening speech, NA Chairman Nguyen Sinh Hung praised the significant achievements the country has recorded over the year in controlling inflation, stabilizing the macroeconomy, ensuring social welfare, maintaining reasonable growth along with renewing the growth model and restructuring the national economy. However, the NA Chief also pointed out difficulties and challenges the country is facing such as low economic growth, high risk of runaway inflation and lax management over the market that have negative impact on people’s lives. He emphasized the need to take effective measures to fulfill all targets set for this year thus giving fresh impetus to ensuring sustainable growth in the years to come. The NA Standing Committee has guided NA agencies and relevant organization to make amendments and supplements to improve the quality of the fourth session and the operational efficiency of the NA, Hung said. The NA leader asked lawmakers to have a higher sense of responsibility, and rack their brains for qualitative opinions that meet people’s expectations. At this session, the NA will consider the Government’s report on the implementation of socio-economic plans for 2012 and 2013, the execution of the State budget for 2012 and budget estimation for 2013. NA deputies will hear a government report on the implementation of plans for socio-economic development this year and next. Lawmakers will also give comments on the draft revisions to the 1992 Constitution and a number of important draft laws which will be made public for feedback. They are expected to pass nine…... [read more]

PM Phuc made the point on December 26 in Ha Noi at a video-teleconference on the implementation of the plan and orientations for 2017 of the Ministry of Agriculture and Rural Development. Three biggest bright points Minister of Agriculture and Rural Development Nguyen Xuan Cuong announced that the three biggest positive achievements, namely growth pace after six months of minus growth rate (at 1.2%); record export (US$ 32.1 billion, up 6% against 2015); development in food hygiene. In 2017, the Ministry targets to gain 2.5-2.8% of growth pace and earn around US$ 32-32.5 billion of export turnover. The Ministry also selected 2017 as a rush year for management of agricultural materials and agro-forestry-fishery food hygiene. Grateful for hard-working peasants Addressing the event, PM Phuc said that in 2016, serious natural disasters cost US$ 1.7 billion, accounting for around 1% of GDP. Especially, the serious flood in the nine Central and Central Highlands provinces caused economic damage of around VND 4 trillion. Despite the most serious natural disasters over the last ten years, the agricultural sector continued to serve as a pillar in the economy and contributed remarkably to social security. The PM attributed the achievements to great effort of the agricultural sector and hard-working peasants. PM Phuc noted the importance of promptly surmounting natural disaster consequences, especially essential and important infrastructure projects and take care of people in flood-hit areas in the Lunar New Year Festival. He called on the agricultural sector to beef up the restructuring and rearrangement of…... [read more]

Nearly 80 Vietnamese and French enterprises attended a workshop in Paris, France, on October 20 to increase trade and investment exchanges under the Vietnam-EU Free Trade Agreement. Minister-Counselor at the Vietnamese Embassy in France Nguyen Manh Thang underlined France as the second biggest European investor in Vietnam with total capital of more than 4 billion EUR (4.36 billion USD). Two-way trade topped 4.07 billion EUR (4.44 billion USD) in 2015, he said, adding that France was the third largest country in the EU to export to Vietnam, after Germany and Italy. Meanwhile, Vietnam led ASEAN in exports to France. The bilateral strategic partnership was signed in 2013 and has been realised through various activities, particularly the official visit to Vietnam by French President Francois Hollande in September 2016, boosting bilateral trade and economic relations. Deputy head of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade Ta Hoang Linh said as of September 2016, Vietnam was ranked 90 th out of the 189 global economies on the ease of doing business globally by the World Bank, improving three places from 2015. He revealed that Vietnam exported 2.63 billion EUR (2.87 billion USD) worth of goods to France in 2015, including electronic equipment and spare parts, garment-textile, footwear, timber products, coffee and seafood. Meanwhile, France exported 1.13 billion EUR (1.23 billion USD) worth of goods to Vietnam, encompassing medicine, chemicals, equipment, machinery, milk and dairy products, and cosmetics, he noted. Director of Business France’s international cooperation department Philippe…... [read more]

Petrol price hike of over VND400 per litre Retail prices of RON 92 petrol and E5 bio-fuel increased by VND441 (US$0,019) and VND392 per litre, respectively, yesterday. Following a joint decision issued by the ministries of Industry and Trade and Finance, the price of diesel 0.05S rose by VND599 per litre, while that of kerosene went up by VND520 per litre. This was the nineth hike Vietnamin fuel prices so far this year with a total increase of nearly VND5,000 per litre. By contrast, the prices have been dropped eight times since the beginning of the year, with the decreases amounting to about VND4,463 per litre. Current ceiling prices of RON 92 and E5 bio-fuel are VND16,845 per litre and VND16,533 per litre, while maximum prices of diesel and paraffin are kept at VND13,023 per litre and VND11,543 per litre. The average global price of RON 92 during the last 15 days was $59.995 a barrel, while that of diesel 0.05S was $62.338 per barrel, the ministries said. They also decided to maintain subsidies for RON 92 and E5 at VND600 and on diesel and kerosene at VND300 per litre. The subsidies are sourced by the fuel stabilisation fund. Vinafood 1 Flourmill offering 34% stake for sale Vinafood 1 Flour One Member Company Limited, a member of State-owned Vietnam Northern Food Corporation (Vinafood 1), will auction over 8.2 million shares, equivalent to a 34 per cent stake. The auction on the Ha Noi Stock Exchange will take place on October…... [read more]

The event, organised by the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade and the Vietnamese embassy in France, featured the participation of nearly 80 Vietnamese and French enterprises. With many assets, such as political stability, rapid economic growth and a young and highly skilled workforce, Vietnam is considered an attractive destination of French investors, according to Philippe Yvergniaux, Director of Business France’s international cooperation department. He said around 2,000 French companies exported goods to Vietnam, while 300 French businesses were invested in the Southeast Asian market. Apart from major companies such as Airbus and Peugeot, many French small and medium-sized enterprises operate in Vietnam , he said, referring to business opportunities in transport infrastructure and agro-forestry-fisheries. Addressing the workshop, Nguyen Manh Thang, Minister-Counselor at the Vietnamese Embassy in France, underlined that, with a total invested capital of more than EUR 4 billion (US$ 4.36 billion), France was the second-biggest European investor in Vietnam. Two-way trade topped EUR 4.07 billion (US$ 4.44 billion) in 2015, he said, adding that France was the third-largest country in the EU to export to Vietnam , after Germany and Italy. Meanwhile, Vietnam led ASEAN in exports to France. The bilateral strategic partnership was signed in 2013 and has been implemented by way of various activities, particularly the official visit to Vietnam by French President François Hollande in September 2016, boosting bilateral trade and economic relations. Deputy head of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade Ta…... [read more]

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